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ED attaches property worth Rs 110 crore in KSBL case

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The Enforcement Directorate (ED) on Saturday said that they have attached immovable and movable assets worth Rs 110 crore in the money laundering investigation against Karvy Stock Broking Ltd (KSBL), its Chairman Comandur Parthasarathy and others.

With the fresh attachments, the total now stands at Rs 2,095 crore.

In March, the ED had attached immovable and movable properties in the form of land, buildings and share holdings worth Rs 1,984 crore.

The probe agency initiated its investigation on the basis of FIRs filed by the CCS Police Station, Hyderabad Police, on the complaints of lending Banks who complained that the Karvy Group had availed large amounts of loans by illegally pledging their clients’ shares worth about Rs 2,800 crore and the said loans became NPA after the release of the client’s securities as per the orders of NSE and SEBI.

KSBL was one of the leading Stock Brokers in the country with millions of clients. The scam came to light after a limited purpose inspection of KSBL conducted by NSE in 2019 revealed that KSBL had not revealed a DP Account and credited the funds raised by pledging of client securities to six of its own bank accounts (“Stock Broker-own Account”) instead of the “Stock Broker-Client Account”.

The ED collected the audit conducted by NSE and the orders passed by SEBI and ROC against KSBL and the forensic audit reports of BDO India LLP.

In 2021, the ED conducted searches at nine locations. This year, Parathasarathy, and G. Hari Krishna, CFO, were arrested and were sent to judicial custody.

The agency said that the accused were evasive throughout the questioning.

According to ED investigation, KSBL had misused the Power of Attorney given by its clients and misused the same to illegally raise loans.

Shares of clients who did not owe any funds to KSBL had been transferred to the Pool Account of KSBL and were pledged with the banks by making misleading declaration of ownership.

“Share transfers were done from the client’s accounts for which the KSBL’s Sales Team claimed that they had taken clients’ approval for stock lending through phone or orally, but there were no supporting documentary evidence,” said an ED official.

Large amounts of proceeds of crime were ‘invested’ by the accused in the form of investments, short term advances, loans to group companies. This resulted in enhancement of the value of the subsidiary companies of KSBL.

“Now the accused were trying to sell these subsidiary businesses at a profit to yield indirect windfall gains to the main accused,” the ED said.

Crime

CISF seizes foreign currency worth Rs 1.13 crore at Kolkata airport

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Alert personnel of the Central Industrial Security Force (CISF) detected foreign currency worth approximately Rs 1.14 crore concealed in the hand baggage of two passengers bound for Bangkok at Netaji Subhas Chandra Bose International Airport, Kolkata.

The detection took place around 10:20 a.m. on October 19 during routine security screening at the International Terminal Security Hold Area. A CISF screener noticed suspicious images in the X-ray scans of the hand baggage carried by the two passengers scheduled to travel to Bangkok on Bhutan Airlines flight B3700. The bags were subsequently referred for physical examination.

During the inspection, CISF personnel recovered USD 1,19,900, equivalent to approximately Rs 1,13,64,002, concealed inside false bottoms of the two bags. The foreign currency had been wrapped in newspaper in an apparent attempt to conceal it from security personnel.

Of the total amount recovered, USD 74,900 was found in the hand baggage of one passenger, while USD 45,000 was recovered from the other passenger’s bag.

Following the prescribed formalities, both passengers, along with the seized currency, were handed over to the Air Intelligence Unit (AIU) of Customs for further investigation and necessary legal action.

On October 20, the passenger from whose baggage USD 74,900 was recovered was taken by AIU/Customs officials to the District and Sessions Court for further legal proceedings following the investigation and seizure. The second passenger was released by Customs after the issuance of a detention receipt for the USD 45,000 recovered from the passenger’s baggage.

CISF in a release reiterated its commitment to maintaining aviation security through effective screening procedures, alert surveillance and professional conduct by its personnel. According to officials, the detection stresses the importance of coordinated action between airport security personnel and Customs authorities in addressing suspected financial and currency-related violations.

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Crime

Gujarat: Man held after 0.77 grams of mephedrone found in ‘porter’ delivery parcel

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A 27-year-old businessman was arrested by Naroda police after 0.77 grams of suspected mephedrone, valued at Rs 1,540, was found in a parcel being delivered through the Porter application near Nana Chiloda Circle in Ahmedabad, police said on Wednesday.

The case came to light after police received a control-room message about a suspicious parcel that had arrived for delivery through the application.

The substance was examined preliminarily by a Forensic Science Laboratory (FSL) officer in the presence of panch witnesses and was found to be mephedrone, a synthetic drug.

Police seized the substance and initially registered an offence against three unidentified mobile phone holders under Sections 8(c), 22(a) and 29 of the Narcotic Drugs and Psychotropic Substances (NDPS) Act.

During the investigation, they traced and arrested the man suspected of ordering the consignment through the parcel.

The accused was identified as Priyang Sanghvi (27). He is a businessman who lives in Aram Park Flats in the Sabarmati area of the city. He is originally from Shirodi village in Rajasthan’s Sirohi district.

According to the police, the suspected method involved using a mobile phone number belonging to a witness to log in to the Porter application.

Drug consignments were allegedly packed separately in zipper bags and sent through the delivery service. An intermediary was allegedly used to distribute the drugs to different customers for sale.

The police said the arrest followed instructions from senior officers to curb the illegal sale and transportation of narcotic substances and detect offences related to them.

“The operation was conducted by Naroda police personnel under the supervision of Senior Police Inspector B M Katariya,” officials said.

The police seized 0.77 grams of mephedrone, valued at Rs 1,540. The investigation concerns the alleged use of a parcel delivery application to transport the substance and its subsequent distribution through an intermediary.

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Crime

Bihar: 75-year-old man stabbed to death; woman and her son injured

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A 75-year-old man was allegedly stabbed to death, while a woman and her 25-year-old son were injured in a violent clash between neighbours at Rohda Kala village under Barharia police station limits in Bihar’s Siwan district on Wednesday.

The deceased was identified as Rama Nandan Prasad, son of the late Garib Bhagat.

The injured were identified as Baby Devi, 44, and her son Kishan Kumar, 25.

The injured were taken to the Barharia Community Health Centre for treatment. While Kishan received primary medical care, Baby Devi was referred to Siwan Sadar Hospital due to her critical condition.

According to Kishan Kumar, his grandfather was sitting outside the house drinking tea while his mother was cooking, and he was asleep.

Hearing a commotion, he went outside and found his grandfather lying in a pool of blood.

He then heard his mother crying from inside the house and rushed in, where he allegedly saw neighbours attacking her with knives. When he tried to intervene, he was also injured in the attack.

Kishan claimed that he had no prior dispute with the neighbours and said the reason for the attack was unclear.

With the help of residents, two alleged assailants were apprehended and handed over to the police.

After receiving information, the Barharia police reached the village and launched an investigation.

A Forensic Science Laboratory (FSL) team was also called to collect evidence from the scene.

The police have set up a camp in the village amid tension following the incident.

Barharia Station House Officer Chhotan Kumar said a patrolling officer was initially sent to the spot, after which he reached the village to investigate the incident.

He said an FIR has been registered against the named accused based on Kishan Kumar’s statement.

The two detained suspects are being questioned, while the motive behind the incident remains unclear.

Police said further action would be taken based on the investigation.

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